USA Mobility announced plans to shrink its three divisions into two, as the company works to fully integrate the Arch Wireless and Metrocall operations.

USA Mobility was formed in November 2004 following the merger of Metrocall Holdings and Arch Wireless. The combined entity changed its name to USA Mobility and pledged to be a leader in the wireless messaging space.

Instead of three operating divisions in five regions, the company will consolidate them into two operating divisions in six regions.

In conjunction with the consolidation announcement, USA Mobility announced a management shuffle. COO Stan Sech and senior vice president of finance/treasurer George Moratis plan to leave the company on June 30.

Peter Barnett, currently chief technology officer, will assume the role of COO on July 1. Barnett was Arch Wireless' chief information officer prior to the merger.

CFO Thomas Schilling will take up the responsibilities of treasurer as he continues to oversee the company's accounting, finance, financial planning and audit activities.

William Redmond also announced his resignation as a director on USA Mobility's board, effective June 6.

Earlier this month, USA Mobility reported a dip in first-quarter net income to $1.3 million, or 5 cents per fully diluted share, from net income of $4.9 million, or 24 cents per fully diluted share, a year ago. The company attributed the drop to expenses related to three former Arch executives. Revenue was up 34 percent year-over-year to $166 million.

The company also reported a net decline of 344,000 messaging units in service during the first quarter of 2005, which included a decrease of 316,000 one-way messaging units and 28,000 two-way messaging units.

This quarter represented the first financials presented by the combined company.